The new owner of the Gucci luxury goods brand suffered a sales dip in the second quarter. Pinault Printemps Redoute (PPR), which is Europe's biggest non-food retailer, also confirmed it was looking to sell Rexel, its electrical goods distribution business, by the end of the year, in order to put more focus on Gucci.

PPR said it had not yet begun the sell-off process for Rexel, which had sales last year of GBP4.47 billion. But PPR chairman Serge Weinberg said: "Our timeframe remains unchanged. We had in mind a divestment calendar when we indicated that our sell-off timeframe was the end of 2004. Things are unfolding as we foresaw."

Analysts had seen a sale of Rexel taking until the middle of next year, but with its performance improving, the original PPR timescale looks like it will be vindicated.

Over the second quarter, sales at Rexel were up a better-than-expected 5.3 per cent to GBP1.14bn, with underlying growth seen accelerating over the rest of the year.

But over the three-month period, group sales were down to GBP3.75bn, from GBP4bn, but were slightly ahead of consensus estimates for GBP3.74bn. The strength of the euro cost the firm GBP169 million over the quarter, while divestment charges cost it a further GBP908m. Setting that aside, the company saw underlying turnover rise by a healthy 6.2 per cent.

Sales at what the firm refers to as "new PPR" - which excludes Rexel turnover - were up 5.1 per cent to GBP2.6bn.

Mr Weinberg gave no indications for the full year but pointed to significant progress at some of the Gucci group brands.

Gucci faced a series of high-profile departures as PPR took over the firm, but PPR said Gucci group turnover had still increased with a 4.9 per cent rise in the first quarter improving to double- digit growth in April and May.